Venture growth investor, Iron Pillar has successfully raised US$129 million for its Series B/C stage fund to invest in global cloud software companies from India. This fund is one of the series of funds under Iron Pillar Fund II. The investors for this fund included the existing institutional investors of Iron Pillar from the US, Europe, and the Middle East, as well as new investors that includes two Endowments and a Foundation.
Iron Pillar has been investing actively in several global cloud software firms from India such as Uniphore, Servify, CoreStack, Ushur, Jiffy, Sibros, and Pando since its establishment in 2016. The newly raised fund will remain dedicated to supporting companies that are revolutionizing the global cloud ecosystem, particularly in Software as a Service (SaaS) and Cloud Infrastructure, across important investment areas like cyber security and governance, DevOps tools, future of work and education, and automation.
“Iron Pillar is built on a fundamental belief that Indian founders will build large technology companies, not only for India but also for global markets. We are thrilled to have raised the first-ever growth stage fund with a dedicated focus on investing in global cloud software companies from India. The global cloud opportunity is growing at an unprecedented pace, and we believe that Indian founders will continue to build some generational businesses in this space. We look forward to actively supporting these founders in their growth stage with this fund.” said Anand Prasanna, Managing Partner, Iron Pillar.
Iron Pillar’s investment approach is unique as it leads Series B/C rounds in its portfolio companies and subsequently doubles down on high-performing businesses with 5x to 10x of its initial investment. In addition to capital, Iron Pillar’s portfolio firms benefit from the company’s vast global network, which provides them with access to potential clients, strategic partners, C-level technology executives, and additional capital sources. Currently, Iron Pillar has nearly US$500 million in Assets Under Management (AUM).
“We are proud of the growth and success of our portfolio companies and are looking forward to supporting more such companies in their growth journey. The cloud ecosystem is rapidly evolving, and we are confident in our ability to help entrepreneurs create market-leading companies in India and around the world,” said Mohanjit Jolly, Partner, Iron Pillar.
According to Bain & Company’s data, SaaS companies originating from India have generated Annual Recurring Revenue (ARR) of US$12 billion in 2022, which is four times more than the revenue generated in the past five years. They predict that over the next five years, Indian SaaS firms will attain a combined ARR of around US$35 billion and capture roughly 8% of the worldwide SaaS market.
Moreover, market intelligence company International Data Corporation (IDC) has predicted that the public cloud services market in India is expected to reach $13 billion by 2026, at a compound annual growth rate of 23.1% from 2021 to 2026.
Iron Pillar is set to leverage this mega trend with its latest fund and its LPs are excited about the India opportunity.
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